SP Angel Morning View -Today’s Market View, Monday 23rd September 2024

Gold ($2,615/oz) holds near record highs as dollar strengthens before PCE data

MiFID II exempt information – see disclaimer below

80 Mile Plc* (80M LN) formerly Bluejay Mining – Exploration at Dundas ilmenite-bearing hard rock sills shows significant potential tonnage

Adriatic Metals (ADT1 LN) –Operations update as development accelerates and alternative TSF underway

Aterian plc* (ATN LN) – Interim results highlight careful control on costs while making progress in Morocco, Rwanda and Botswana

Caledonia Mining* (CMCL LN) – Fatality at the Blanket mine

Cobra Resources (COBR LN) – Licence expansion at the Boland REE project, South Australia

First Class Metals (FCM LN) – Geochemical results from Ontario exploration

Gem Diamonds (GEMD LN) – Letšeng yields another >100 carat diamond

Jubilee Metals Group (JLP LN) – Renewable power helps drive capacity increases in Zambia

Keras Resources* (KRS LN) – Diamond Creek Phosphate Project, USA

Metals Exploration (MTL LN) – Debt free status reached on robust production and higher gold prices in 1H24

South32 (S32 LN) – US DoE grant for Hermosa manganese

Tertiary Minerals* (TYM LN) – Exploration update as drilling starts at Mushima

Vast Resources (VAST LN) – Lender threatens enforcement action

Wishbone Gold* (WSBN LN) – £360,000 funding

Gold ($2,615/oz) holds near record highs as dollar strengthens before PCE data

• Gold prices rallied again into the end of last week, breaking through $2,600/oz and hitting record highs of $2,631/oz.
• The dollar strengthened this morning against a basket of currencies as disappointing European data weighed on the Euro.
• Treasuries have continued to sell off after hitting overbought territory in the run up to the Fed 50bp decision.
• PCE ‘Personal Consumption Estimate’ data will be watched this week for further clues, as the market now expects two 25bp cuts in November and December.
• Analysis of import statistics from Switzerland indicates buying by Saudi Arabia.
• We believe other central banks have been buying gold in anticipation of a weaker US dollar. In an uncertain and changing world gold is a go-to default.
• The PBoC says it has not been a buyer of gold since May but Indian and Chinese investors have been buyers.
• Indian gold imports hit a record $10.06bn (~131t) in August helping prices higher after a 9% cut in import tariffs according to estimates by MetalsFocus.
• Reports indicate strong demand for gold jewellery in India.

Copper ($9,457/t) benefits from Powell rate cut and sliding China stocks

• Copper prices have held higher levels after rallying over the past few weeks on lower Chinese inventories and Powell’s dovish FOMC decision.
• Yangshan premiums have been ticking higher, hitting their highest level this year as buying appetite returns.
• A stronger Yuan and the recent sell off saw Chinese buyers restocking, explaining sliding inventory levels. .
• Rio’s Chairman has warned over a lack of copper projects, stating ‘we’re just going to have to build more… discover and mine more copper in the next 30 years.’

Video: This is Why Gold is Rising and It Will Probably Continue: https://www.youtube.com/watch?v=EsA7ICSVku8

• Podcast: https://audioboom.com/posts/8547593-john-meyer-this-has-one-of-the-lowest-risk-profiles-i-ve-seen-for-a-long-time

Economics

UK – Preliminary PMIs showed a slight slowdown in growth with inflation seen easing to a 42-month low in September.

• Services sector inflation slowed more than offsetting an acceleration in factory gate price inflation.
• New business orders climbed driven by domestic demand with overseas orders remaining relatively subdued and weak EU sales highlighted.
• Employment slowed for a second month running to the weakest since June.
• UK Preliminary Manufacturing PMI (Aug/Jul/Est): 51.5/52.5/52.2
• UK Preliminary Services PMI (Aug/Jul/Est): 52.8/53.7/53.5
• UK Preliminary Composite PMI (Aug/Jul/Est): 52.9/53.8/53.5

High interest rates and high taxes

• Is the BoE favouring Pensioners by keeping interest rates high to offset their loss of Winter Fuel Allowance?
• Given the BoE committee is closer to pensionable age than many could this be part of their strategy.
• Is the BoE trying to limit Labour’s ability to raise tax by stimulating a recession.

China – The central bank unexpectedly cuts rates and is holding a briefing involving three top financial regulators.

• The announcement along the meeting raised hopes that officials are preparing a step up in stimulus.
• PBOC Governor used a similar briefing in January before a cut in the reserve requirement ratio.
• 14d Repo Rate (Latest/Previous/Est): 1.85%/1.95%/NA

Eurozone – Business activity falls into a contraction territory hitting the weakest level in eight months on September preliminary PMI numbers.

• “The reduction in overall business activity was driven by a deepening downturn in the eurozone manufacturing sector, where production decreased for the 18th month running and at the fastest pace in the year to date,” S&P Global said.
• ““The eurozone is heading towards stagnation… after the Olympic effect had temporarily boosted France, the eurozone heavyweight economy, the Composite PMI fell in September to the largest extent in 15 months.”
• “With the ECB closely watching the persistently high inflation in services, the news that both input and output price inflation has slowed down is certainly welcome.”
• Numbers point to a potential rate cut during the October meeting.
• Eurozone Preliminary Manufacturing PMI (Aug/Jul/Est): 44.8/45.8/45.7
• Eurozone Preliminary Services PMI (Aug/Jul/Est): 50.5/52.9/52.3
• Eurozone Preliminary Composite PMI (Aug/Jul/Est): 48.9/51.0/50.5

Germany

• Germany Preliminary Manufacturing PMI (Aug/Jul/Est): 40.3/42.4/42.3
• Germany Preliminary Services PMI (Aug/Jul/Est): 50.6/51.2/51.0
• Germany Preliminary Composite PMI (Aug/Jul/Est): 47.2/48.4/48.2

France

• France Preliminary Manufacturing PMI (Aug/Jul/Est): 44.0/43.9/44.2
• France Preliminary Services PMI (Aug/Jul/Est): 48.3/55.0/53.1
• France Preliminary Composite PMI (Aug/Jul/Est): 47.4/53.1/51.5

The Labour pledged extra £7bn for the UK Infrastructure Bank via a new National Wealth Fund, according to FT.

• The UKIB was criticised for having invested just £4bn of the £22bn made available so far.
• MPs argued the bank was funding projects already backed by private capital and “lacking a strategic vision”.
• UKIB was also criticised for investing into third party funds including a new infrastructure vehicle managed by Octopus Investments.
• UKIB employs 245 permanent staff and is led by John Flint, a former head of HSBC.
• £4bn deployed so far has been directed at equity, debt and guarantees on 38 projects including the expansion of broadband in rural Cumbria and Cornish Lithium developing its lithium properties in the south of the UK.

Currencies

US$1.111/eur vs 1.117/eur previous. Yen 143.66/$ vs 143.36/$. SAr 17.462/$ vs 17.539/$. $1.327/gbp vs $1.333/gbp. 0.680/aud vs 0.682/aud. CNY 7.057/$ vs 7.052/$.

Dollar Index 101.05 vs 100.58 previous

Precious metals:         

Gold US$2,616/oz US$2,607/oz previous

Gold ETFs 83.3moz 83.3moz previous

Platinum US$962/oz US$991/oz previous

Palladium US$1,043/oz US$1,090/oz previous

Silver US$30.8/oz US$31.2/oz previous

Rhodium US$4,750/oz US$4,750/oz previous

Base metals:   

Copper US$9,422/t US$9,568/t previous

Aluminium US$2,424/t US$2,541/t previous

Nickel US$16,401/t US$16,465/t previous

Zinc US$2,840/t US$2,931/t previous

Lead US$2,044/t US$2,089/t previous

Tin US$31,823/t US$32,305/t previous

Energy:           

Oil US$73.9/bbl US$74.6/bbl

Natural Gas €35.0/MWh €34.0/MWh

Uranium Futures $79.3/lb $79.3/lb

Bulk:   

Iron Ore 62% Fe Spot (cfr Tianjin) US$91.9/t vs US$92.6/t

Chinese steel rebar 25mm US$480.8/t vs US$478.6/t

Thermal coal (1st year forward cif ARA) US$113.3/t vs US$115.9/t

Thermal coal swap Australia FOB US$136.8/t vs US$135.3/t

Coking coal Dalian Exchange futures price US$173/t vs US$172.7/t

Other:  

Cobalt LME 3m US$24,300/t vs US$24,300/t

NdPr Rare Earth Oxide (China) US$58,995/t vs US$58,647/t

Lithium carbonate 99% (China) US$9,998/t vs US$9,975/t

China Spodumene Li2O 6%min CIF US$740/t vs US$740/t

Ferro-Manganese European Mn78% min US$995/t vs US$995/t

China Tungsten APT 88.5% FOB US$330/mtu vs US$330/mtu

China Graphite Flake -194 FOB US$440/t vs US$440/t

Europe Vanadium Pentoxide 98% 4.6/lb vs US$4.6/lb

Europe Ferro-Vanadium 80% 24.55/kg vs US$24.55/kg

China Ilmenite Concentrate TiO2 US$323/t vs US$322/t

China Rutile Concentrate 95% TiO2 US$1,383/t vs US$1,380/t

Spot CO2 Emissions EUA Price US$63.4/t vs US$63.4/t

Brazil Potash CFR Granular Spot US$290.0/t vs US$290.0/t

Germanium China 99.99% US$2,625.0/kg vs US$2,625.0/kg

China Gallium 99.99% US$455.0/kg vs US$445.0/kg

Battery News

Lead Batteries to Retain Over 30% Market Share Amid Growing Global Battery Market

• The global battery market is valued at over $250 billion and continues to rise, with lead batteries maintaining a strong position (BESTmag).
• Initial concerns that lithium-ion batteries would completely dominate the market and that lead would face EU restrictions did not fully materialize.
• The lead battery sector grew from 526 GWh in 2020 to 550 GWh in 2023, holding over 30% of the global battery market share.
• In industrial applications, lead batteries dominate the UPS (70%), telecom (73%), and motive (51%) battery sectors, though they hold only 1% of the ESS market, where lithium-ion dominates.
• Despite challenges from LFP batteries, lead batteries are expected to remain part of a multi-battery landscape, showing resilience in the market.

Oman Sees 300% Surge in EVs in 2024

• Oman experienced a 300% increase in electric vehicles from 2023 to 2024, with numbers rising from 550 to 1,500 (Times of Oman).
• Green mobility is a key part of Oman’s sustainable development plan, aiming to reduce carbon emissions by 2050.
• By 2023, over 120 EV charging points were installed, with plans to expand to more than 200 by the end of the year and over 350 by 2027.
• Efforts are underway to convert port equipment and airports to operate on electric power and make them environmentally friendly.

Alef’s Flying Electric Car Nears Production with 3,200 Pre-orders

• Alef Aeronautics is progressing toward launching its electric flying car, the Model A, capable of driving 200 miles and flying 110 miles, priced at $300,000 (Interesting Engineering).
• Founded in 2015, Alef aims to make flying cars an affordable reality, combining the functionality of a car and a vertical takeoff flying vehicle.
• Early investor Tim Draper, a prominent venture capitalist, contributed $3 million in seed funding.
• Alef became the first to secure flying car pre-orders through a California car dealership, a groundbreaking step.
• Alef’s mass production agreement involves PUCARA Aero and MYC, providing aviation-grade parts certified by major authorities like the FAA and EASA.
• Production of the Model A is set to begin in late 2025, with deliveries following soon after..

Company News

80 Mile Plc* (80M LN) formerly Bluejay Mining* – 0.31p, Mkt cap £6.3m – Exploration at Dundas ilmenite-bearing hard rock sills shows significant potential tonnage

(Bluejay Mining holds 100% of the Hammaslahti and Enonkoski projects and all its Greenland prospects)

• Dundas JORC Exploration Target estimates potential for 170-540mt of ilmenite-bearing hard rock sills with a TiO₂ grade range of 4.7 to 5.5%. by consultants, SRK Exploration.
• The new resource estimate uses assay results and data from sonic drilling data (2017-2018), trenching, diamond drilling (2022) and surface sampling.
• The target area is limited to 80 Mile’s existing Mining Licence areas at Moriusaq West Beach, Moriusaq East Beach, Iterlak West Sill 1, Iterlak West Sill 2, and Iterlak East Beach.
• The relatively high TiO₂ grade (4.7-5.5%) offers potential for the future mining of this hard-rock deposit beneath and adjacent to the raised beaches.
• Management are looking to advance the JORC Exploration Target to a better defined MRE ‘Mineral Resource Estimate’ which requires the application of some economic parameters.
• The team will need to rework the economics of the Dundas project to evaluate the economics of a potential hard-rock project.
• The new, larger scale, of the project creates an opportunity to demonstrate value for potential offtake to China.
• Management remain focussed on exploration for nickel, copper and other metals at Disko where KoBold Metals has collected substantial exploration data.
• The industrial gas projects remain a new focus on its Outokumpu licenses in Finland where test work shows stabilized values of up to 10.7% Helium in the Perttilahti Area.
• Jameson (Industrial gas): Preparation for the White Flame Jameson Environmental Impact Assessment and drilling consultation where White Flame Energy, now part of 80 Mile plc holds 100% of three potentially large-scale industrial gas, natural gas and liquid hydrocarbon rich exploration and exploitation licences, onshore, East Greenland.
• It is estimated that >$125m has been spent by ARCO and the Danish and Greenland governments on exploration in Jameson Land over the past 50 years.

Conclusion: 80 Mile plc sees potential in the new scale of the Dundas project and the potential for copper in the Sills where elevated copper grades suggest potential to discover greater grade.

A reworking of the Dundas project economics could also result in new value estimation in this area.

We await an update on the Jameson industrial gasses project alongside news on the analysis of exploration at Disko in the near future as management rework their portfolio.

*SP Angel acts as nomad and broker to 80 Mile Plc (formerly Bluejay Mining). The analyst has visited Dundas in Greenland and the Hammaslahti and Enonkoski projects in Finland.

Adriatic Metals (ADT1 LN) 180p, Mkt cap £550m –Operations update as development accelerates and alternative TSF underway

• Adriatic reports an operations update from the continued ramp up at the Rupice polymetallic mine.
• The Company reports higher mined grades than anticipated and an increase in development rates.
• The first stope has been brought into production, producing 25.5kt of ore in August vs 5.6kt in July.
• Development rates increased to 318m in August, 6% higher than anticipated.
• September has seen production of 26kt at 500g/t AgEq.
• Guidance lowered for FY24 at 180kt (240-300kt previous), but 2025 guidance held at 750-800kt.
• Company reports head grades in September to date of:
  • 10.8% Zn
  • 6.9% Pb
  • 292g/t Ag
  • 3.4g/t Au
• Recoveries reported at
  • 66% Zn
  • 54% Pb
  • 86% Ag
  • 60% Au
• Management reports recoveries are expected to improve as ramp up progresses and feed grade stabilises.
• Concentrate grades reported at 47% Zn, 2,200g/t Ag, 44% Pb, with no issues reported on current concentrate spec.
• Company is set to provide an update on increasing the plant throughput from current 800ktpa capacity.
• Regarding the alternative tailings facility, Adriatic is looking to the Veovaca open pit site which sits 2km from the processing plant
• The Company owns the surface rights and will need to secure permits for water and environment.
• TSF approval is expected In October and the Company has begun constructing road access.
• Cash reported at $35.6m, with an undrawn $25m from Orion facility.
• $18m will be due to Orion on 31^st December 2024.

Aterian plc* (ATN LN) 55p, Mkt Cap £5.3m – Interim results highlight careful control on costs while making progress in Morocco, Rwanda and Botswana

(Rio Tinto jv has the option to invest US$7.5m in two stages to earn up to 75% in the HCK lithium and tantalum hard rock prospect in Rwanda)

(Aterian holds a 70% interest in Kinunga Mining Limited which holds the HCK licence alongside HCK Mining Company Limited which has a 30% interest.

Aterian also holds a 90% in Atlantis Metals which holds its licenses in Botswana)

• Aterian report a net loss of £480,000 for the six-months to end June vs a loss of £942,000 a year earlier.
• The team reduced administrative expenses to £684,000 from £813,000 yoy partly through reduced professional fees paid.
• Directors’ salaries came to £122,000 for the six-month period vs £120,000 for the year with Charles Bray and Simon Rollason earning £48,000 each through the period and the NEDs on a combined £26,000.
• The company is carrying a £225,000 loan from Bray Transfer Trust which agreed to make £500,000 avaialble.
  • “On 9 August 2023, £300,000 of the loan balance was converted to Ordinary Shares. Interest of £19,734 was payable for the period ended 30 June 2024.”
• The team have a substantial and promising portfolio of prospects and are busy on the low-cost work that is needed ahead of target generation.
• The jv with Rio Tinto in Rwanda is a strong endorsement of the quality of the Aterian team and the work being done to advance exploration.

Conclusion: Aterian is making steady progress in its exploration in Morocco, Rwanda and Botswana.

*SP Angel acts as Broker to Aterian Plc

Caledonia Mining* (CMCL LN) 1015p, Mkt Cap £195m – Fatality at the Blanket mine

• We are saddened to learn of the death of a mineworker at Caledonia’s Blanket gold mine in Zimbabwe.
• The accident, which occurred on 21^st September, involved a rockfall during drilling in a development area of the mine and is a stark reminder of the inherent risks of mining. We join with the company’s expression of its condolences to the colleagues and family of the victim.

*SP Angel mining analysts have visited Caledonia’s mining operations in Zimbabwe

Cobra Resources (COBR LN) 1.00p, Mkt cap £6.9m – Licence expansion at the Boland REE project, South Australia

• Cobra Resources reports that it has been awarded an additional 954km² exploration licence in the Eyre Peninsula of South Australia taking its holding to 5,200km² including “over 2,000km² of mapped palaeochannel geology”.
• The company is exploring these palaeochannels for rare-earth elements and ‘roll-front’ style uranium mineralisation accumulating in the channels from the erosion of favourable source rocks.
• Containment of such mineral accumulations “by impermeable clays” offers an opportunity to recover the rare-earth elements using in-situ recovery (ISR) techniques which have “been successfully used for decades to recover uranium from geologically similar systems in South Australia”.
• Cobra Resources says that “ISR techniques will enable non-invasive and low-cost production of critical REEs … [and confirms that] … Bench scale metallurgical test work to date is supporting this model with exceptionally high recoveries with low impurities and low acid consumption”.
• Describing the company’s expanded land position in the Eyre Peninsula as double the size of the nation of Georgia, CEO, Rupert Verco, said that Cobra Resources is “well placed to define a resource of massive scale, with re-assays confirming REE mineralisation across our landholding which, in turn, de-risks follow-up drilling”.
• Confirming that “metallurgical tests are nearing completion”. Mr. Verco said that Cobra Resources sees “a great opportunity to deploy the low cost, low disturbance in situ recovery mining method at our projects, and we are well advanced in demonstrating the significant economic benefits it presents”.

Conclusion: Expansion of the exploration footprint in the Eyre Peninsula gives Cobra Resources a dominant position over areas hosting the prospective palaeochannel geological environment considered amenable to ISR development.

First Class Metals (FCM LN) 2.05p, Mkt Cap £2.8m – Geochemical results from Ontario exploration

1. First Class Metals reports the initial results from its geochemical work on the ‘Dead Otter’ gold trend located near Barrick Gold’s Williams mine at Hemlo in Ontario.
2. The latest results, which are not yet fully complete assayed 500g samples in order to accommodate a suspected ‘coarse gold problem’ from using the more usual 50g samples for fire assay.
3. The initial results have indicated that “mineralisation represents a ‘spotty gold distribution’, rather than a coarse gold issue” and “validate the findings from our fire assay results”.
4. As well as providing validation, the results “reveal a new area of gold anomalism within the trend” which, from maps presented in the announcement appears to lie southeast of the previously identified anomalous area.

Conclusion: Follow up geochemical sampling on the Dead Otter trend shaws an additional area for exploration. We await results from the rest of the programme and news of the company’s plans for further exploration.

Gem Diamonds (GEMD LN) 11.3p, Mkt Cap £15.8m – Letšeng yields another >100 carat diamond

• Gem Diamonds reports the recovery of a 212.9 carat Type II white diamond, from its 70% owned Letšeng mine in Lesotho.
• This is the 13th diamond larger than 100 carats recovered from the mine this year, the most recent being a 126.2 carat stone reported earlier this month.
• The recovery of the latest large diamond adds to the mine’s established history of producing large diamonds which have included the 910 carat ‘Lesotho Legend’ recovered in 2019,and understood to be the fifth largest gem quality diamond ever discovered at that time, which realised US$40m when sold in Antwerp.

Jubilee Metals Group (JLP LN) – 4.95p, Mkt cap £147m – Renewable power helps drive capacity increases in Zambia

• Jubilee Metals reports that the renewable power supply agreement with Lunsemfwa Hydro Power Company (LHPC), which was announced in August, is now delivering fully renewable power to all of its Zambian operations.
• The company confirms that the “Roan Concentrator upgrade is now complete, with its front-end module reaching design throughput of 45 tonnes per hour of waste rock feed for an 8-hour continuous period” and has now been handed over to its operating team.
• The “commencement of stable power supply through the LHPC agreement ensures continuous operation of Roan’s front-end module targeting to achieve 30 000 tonnes per month feed rate”.
• The Roan concentrator is “now capable of processing both historically mined low grade stockpiled material and previously processed materials simultaneously, with a combined capacity of its front-end module as well as milling and flotation plant of up to 13 000 tonnes of copper per annum”.
• The company also reports that open pit mining operations at Munkayo are ramping up towards “15 000 tonnes of run-of-mine ore per month comprising 5 000 tonnes of 3.0% high-grade copper ore delivered direct to the Sable Refinery while the sub 1.0% lower grade copper ore is being stockpiled at site for further processing”.
• CEO, Leon Coetzer, explained that the upgrades at the Roan Concentrator and the Sable Refinery positions Jubilee Metals “to achieve our initial target processing capacity of 25 000 tonnes of copper per year”.
• He also confirmed that the company’s “discussions to secure a further two open pit opportunities are progressing well and I am confident in our ability to secure further similar opportunities”.

Keras Resources* (KRS LN) – 3.20p, Mkt cap £2.58m – Diamond Creek Phosphate Project, USA

(Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA)

• Keras Resources reports the restart of mining at its Diamond Creek Phosphate Project, Utah, USA.
• The mining campaign will run till end November, eg before the snow sets in.
• The Delta Facility is currently operating at full capacity, on a single shift basis.
• Mining starting later than usual due to management focus on the Delta Facility construction, commissioning and production ramp-up.
• The mine has already produced 3,000t with plans to mine a further 3,000-5,000t of rock phosphate by the end of the mining campaign.
• The plan is to truck this material to a laydown area at Diamond Creek with crushed run-of-mine ore progressively hauled to the Delta Facility before winter snowfall.
• This material will be milled to 10 mesh and 50 mesh for direct sales and will also provide feed for the new granulator plant to produce 240SGN PhoSul®.
• Phosul is currently selling for $40 per 25lb (11kg) bag on Amazon in the US or £31 in the UK through theseedsupply.com.
• The mining campaign will ensure sufficient ore for in-house sales as well as feed to the joint venture with PhoSul which 3,500-4,000t of PhoSul® this year.

• Power: Connection to 3-phase power will replace 600kW of diesel generation as soon as is practicably possible reducing power costs and CO2 emissions.

• Manganese:  we await news on the restart of the Nayéga manganese mine by the government of Togo where Keras holds a 1.5% royalty advisory fee plus 6.0% of gross revenue from the mine over the lesser of 3.5 years or 900,000t of beneficiated manganese ore sold..
• The deal with the Togo government should give nearly $0.9m a year at a price of $3.5/dmt for manganese and production of 7,480tpa equating to some $2.6m over three years.
• Manganese ore prices for 38%min FOB South Africa have slipped to $3.65-3.80/dmtu from in July to $4.07-4.22/dmtu from 3.47-3.62/dmtu at end June.
• We note Manganese concentrates are subject to a 25% import tariff into China from this year.
• The recent jump in manganese prices should be good for Keras assuming the government of Togo starts production from the Nayéga manganese mine.

*SP Angel acts as nomad and broker to Keras

Metals Exploration (MTL LN) 5.5p, Mkt Cap £100m – Debt free status reached on robust production and higher gold prices in 1H24

• Revenue up at $91m (1H23: $90m) with lower gold sales (41.6koz v 46.2koz) compensated by higher realised gold prices ($2,190/oz v$1,939/oz).
• AISC averaged $1,066/oz (1H23: $1,110/oz).
• EBIT amounted to $12m (1H23: $31m) reflecting higher depreciation charge ($38m v $12m in 1H23) following an impairment reversal.
• EBITDA came in at $47m (1H23: $43m).
• PAT was $58m (1H23: $37m) including ~$50m in booked impairment reversals.
• $50m impairment reversal together with $100m revaluation booked in FY23 has now fully eliminated the 2018 Runruno impairment.
• Reversal was attributed to higher gold price assumptions and improved productivity at the Runruno mine.
• Post tax CFO totalled $37m (1H23: $40m).
• FCF generated was $33m (1H23: $35m) including $3.5m in capex (1H23: $5m).
• The Company had £7m in cash and no bank debt having resolved all disputes repaying both the senior and mezzanine debt.
• Post period the Company completed a £20m buyback covering entire shareholding of Runruno Holdings (394m shares at 5p) allowing to terminate a production fee agreement ($164/oz per oz gold produced over 204koz from May 2024).
• First drilling campaign to get going at the newly acquired YMC Group properties in 4Q24.

South32 (S32 LN) 162p, Mkt Cap £7.4bn – US DoE grant for Hermosa manganese

• South32 has announced it has received a $166m grant from the US Department of Energy.
• The grant will be used to develop a commercial-scale manganese production facility, with the DoE providing up to 30% of the cost.
• The Company sees Hermosa’s Clark deposit as one of the most advanced battery-grade manganese potential deposits in the US.
• The Company will seek MoUs for supply agreements to the battery manufacturing sector.
• Clark underground development decline is scheduled for the end of CY25.
• Hermosa’s Taylor zinc-lead-silver project is one of South32’s major growth projects going forward.

Tertiary Minerals* (TYM LN) 0.09p, Mkt Cap £3m – Exploration update as drilling starts at Mushima

CLICK FOR LINK

• Tertiary provides an update on their various copper exploration programmes in Zambia.
• The Company has signed a drilling contract for 2,500m of air core drilling at Mushima North, expected to start today.
• The programme will target the main copper-in-soil anomaly.
• Geophysics is also being planned at Mushima North for an additional drill target.
• Konkola west drilling continues with Kobold with the hole now at a depth of 2,000m.
• Kobold will continue drilling until they reach the target horizon/as far as the rig will allow.
• At Mukai, where Tertiary is in agreement with FQM, a 12-hole diamond drilling programme has been planned to test copper-in-soil geochemical anomalies.
• At Jacks, a pitting programme is currently underway to delineate drill targets at coper-in-soil anomalies B and C.
• In Nevada, the Company has planned a four RC hole programme with a drilling permit now submitted to the BLM.

Conclusion: This is a busy period for Tertiary who are conducting an exploration campaign in Zambia and looking to start drilling in Nevada having been bolstered by a recent equity raise. The Company starts drilling today at Mushima North where they have identified a 1.5km x 3km copper-in-soil anomaly. Konkola West drilling continues whilst a 12 hole programme is planned for Mukai, backed by First Quantum. We look forward to updates in what looks to be an exciting time for the copper explorer.

*SP Angel acts as Nomad and Broker to Tertiary Minerals

Vast Resources (VAST LN) 0.08p, Mkt Cap £1m – Lender threatens enforcement action

• AT&T Investments (Alpha) informed the Company that it will commence enforcement procedures if the outstanding debt ($5.8m) is not repaid in full by 26 September.
• FY23 accounts said that the loan is secured against a real estate in Bucharest, Romania.
• An existing shareholder, a third party, has been granted a first ranking security over the Baita Plai Polymetallic Minne in return for allowing the property to be used as a collateral.
• Alpha is holding a second ranking security over Baita Plai.
• The Third Party told the Company that it is not his intention to take any action against the Company should Alpha start any enforcement action against him once deadline comes.

Wishbone Gold* (WSBN LN) – 0.38p, Mkt Cap £1.2m – £360,000 funding

• On Friday, Wishbone Gold reported that it had raised £360,000 through the issue of 96m new shares at a price of 0.375p/share.
• The new shares represent approximately 22.7% of the enlarged company and the additional funds “will cover the Company’s exploration activity in Western Australia in the coming season”.

*SP Angel acts as a Broker for Wishbone Gold

No.1 in Base Metals: SP Angel mining team awarded No 1. ranking for Base Metals forecasting in LSEG Quarterly Starmine Award for Reuters Polls Q1 2024

No.1 in Copper:  “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”

No1. In Gold:  “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”

The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020

Analysts

John Meyer – John.Meyer@spangel.co.uk – 0203 470 0490

Simon Beardsmore – Simon.Beardsmore@spangel.co.uk – 0203 470 0484

Sergey Raevskiy –Sergey.Raevskiy@spangel.co.uk – 0203 470 0474

Sales

Richard Parlons –Richard.Parlons@spangel.co.uk – 0203 470 0472

Abigail Wayne – Abigail.Wayne@spangel.co.uk – 0203 470 0534

Rob Rees – Rob.Rees@spangel.co.uk – 0203 470 0535

Grant Barker – Grant.Barker@spangel.co.uk – 0203 470 0471

SP Angel                                                            

Prince Frederick House

35-39 Maddox Street London

W1S 2PP

*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

DISCLAIMER

This note is a marketing communication and comprises non-independent research. This means it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.

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Where the investment is traded on AIM it should be noted that liquidity may be lower and price movements more volatile.

SPA, its partners, officers and/or employees may own or have positions in any investment(s) mentioned herein or related thereto and may, from time to time add to, or dispose of, any such investment(s).

SPA is registered in England and Wales with company number OC317049.  The registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP.  SPA is authorised and regulated by the UK Financial Conduct Authority and is a Member of the London Stock Exchange plc.

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SPA research ratings – Based on a time horizon of 12 months: Buy = Expected return of more than 15%, Hold = Expected return between -15% and +15%, Sell = Expected return